Tanglawan Consortium to include PNOC in LNG project
TANGLAWAN Philippine LNG Inc. could take in state-firm Philippine National Oil Co. (PNOC) as a stakeholder in its capital-intensive LNG (liquefied natural gas) project.
Tanglawan is a joint venture between Philippine fuel retailer Phoenix Petroleum and China’s largest LNG importer and terminal operator, CNOOC Gas and Power Group Co. Ltd.
Energy Secretary Alfonso G. Cusi said, “Phoenix and PNOC have agreed in principle” for PNOC to be part of the LNG project, which was recently issued a Notice to Proceed by the Department of Energy.
“[PNOC] can be one of the stakeholders,” said Cusi when asked what would be PNOC’s participation in the project. “The PDNGR [Philippine Downstream Natural Gas Regulation] does not mandate or require PNOC to be a stakeholder. It’s a contractual or business decision between PNOC and any private stakeholder.”
When asked if PNOC’s role can be likened to its participation in the Malampaya project in which PNOC-Exploration Corp. (EC) holds a 10-percent stake in the Malampaya consortium, Cusi said “that’s a commercial decision to be made by PNOC.”
As of press time, Cusi clarified that he has not received any official report on an actual agreement that would include PNOC as one of the stakeholders. PNOC and Phoenix officials did not reply when sought for comment.
Tanglawan plans to break ground by 2019 for the regasification and receiving terminal with a capacity of 2.2 metric tons per annum, with commercial operations targeted to start by 2023.
The LNG facility will help support the demand for a clean, low-cost, and environment-friendly energy source in Luzon and contribute to the sustainable development of the Philippine economy.
The integrated long-term project plan also aims to develop a gasfired power generation facility with up to 2,000 megawatts of installed capacity.
After the issuance of the notice to proceed from the DOE, Tanglawan still needs to secure other pertinent permits as provided by the PDNGR. The requirements for the next six months, extendable for another six months based on valid reasons, include Environmental Compliance Certificate and the green light from the National Commission on Indigenous Peoples. Lenie Lectura